VoIP phone solutions are offering businesses cheaper, scalable, communication systems so that their staff and customers can communicate seamlessly. If your small business is currently using a traditional landline phone service, it might be time to make the switch to VoIP.

This guide has everything you need to know about VoIP phone systems. From how VoIP works to benefits and advanced features to look out for, we’ll help you choose the best VoIP service for your business needs so that you can upgrade your communication systems today.

Here’s what we’re going to take a look at throughout this article:

VoIP stands for voice over internet protocol, which refers to when voice calls are made and received via an internet connection rather than traditional landlines or cellular networks.

A VoIP system, also known as an internet phone system or sometimes a cloud phone system, is often cheaper than traditional office phone systems. It also allows businesses to access advanced features for their communications, including SMS messaging.

How does a VoIP phone system work?

When you make a phone call using a VoIP phone, mobile app, or web browser, your voice signals are converted into data packets. These packets are encrypted and sent to the receiver via your broadband connection. At the receiving end, the data packets are decrypted and converted back into voice signals.

This means that all you need to use a VoIP phone is a good internet connection. VoIP solutions can be used with a desk phone, mobile device, and even a browser.

This gives VoIP users plenty of flexibility as to how and where they make IP phone calls and gives you access to a wider range of telephone features than standard landline phones.

You may already have a private branch exchange (PBX) on-site or you may be looking for a VoIP provider that can offer you a hosted VoIP PBX. The two main types of VoIP service are hosted VoIP and SIP trunking and each concern who manages your PBX system.

Hosted VoIP

A hosted VoIP service is a popular type of VoIP system for small businesses as the costs of hosting and maintaining the VoIP system are footed by an external hosted VoIP service provider.

Hosted VoIP uses your Wi-Fi or ethernet connection to transmit business calls. If the receiver is using a phone that can accept digital packets and convert them, such as an IP phone, computer, or mobile device, this is how the call is received. Otherwise, the call is connected via the PSTN.

Most providers offer cloud PBX functionalities with their hosted VoIP packages.

SIP Trunking

If your business already has wired phones and a PBX phone system, that doesn’t mean you can’t switch to VoIP. With SIP trunking, you can connect your current, on-premises landline PBX system to the internet.

SIP trunking is a great option for businesses with a legacy telephone system that they want to keep or gradually phase out. You can get many of the benefits of hosted VoIP with SIP trunking, but it does still require on-site maintenance.

1) Essential calling features

These essential calling features should be part of your VoIP service for no extra charge:

• Call routing
• Call forwarding
• Voicemail
• Call recording
• Caller ID
• Call queues and hold functions

Whether you’re a small business with a sales team or you have a whole contact center to manage, you’ll need these features to effectively manage your communications.

2) Call analytics

Another important advanced feature offered by VoIP service providers is call analytics. This allows for advanced call management, real-time and post-call analytics, helping your business make data-driven decisions.

Call analytics software is especially useful for businesses with call centers, large teams, or remote workers as it allows you to manage and generate reports on calls in real-time. With 8x8 call analytics, you can view speech and sentiment analysis, average call wait and handle time, call abandonment rates, and individual employee reports.

3) Unlimited calling

One of the reasons that VoIP is often cheaper than traditional phone systems that use landline is that VoIP providers offer unlimited calling. That means domestic calls are always included in your price plans. 8x8 customers based in North America always get unlimited calls to the United States and Canada.

A VoIP service also usually offer cheaper international calling rates. If your business has international customers and clients, you can expect cheaper per minute rates for international calls with a VoIP service.

4) HD voice

With VoIP, you can get crisp, superior voice quality thanks to HD voice functionalities. This is especially useful for calls with customers and clients where there may be background noise, accented or quiet speakers, or conference calls with multiple speakers.

5) Virtual and toll-free number set up

With a VoIP system, it’s easy and cheap to set up a virtual toll-free number for your business. That means if you want a toll-free support number for your customers, you can set one up in minutes on your VoIP account.

This can also make handling international calls easier and cheaper. With 8x8, you can set up international virtual numbers that don’t require you to have an office in that country.

6) Conference calling

Conference calling is an important phone feature for everyday business communications. A business VoIP service should include conference calling that allows participants to join via landline, IP phone, mobile phone, or desktop.

7) Auto attendant

Many offices are replacing receptionists with virtual assistants thanks to this VoIP feature. With 8x8, you’ll have an automated, virtual receptionist with a custom greeting that can provide a menu of options for incoming calls using interactive voice response (IVR) technology and forwarding calls to the right place.

These digital assistants have other functionalities too. They can provide custom greetings outside of business hours with your company’s contact hours and where to find further information.

8) Mobile and desktop apps

The beauty of VoIP solutions is that they allow your employees to make and receive calls from a variety of devices, including call center headsets, personal mobile phones, and desktop softphones. With mobile and desktop apps, employees are free to make calls whenever and wherever, all from a single business phone number.

For example, 8x8 has a mobile app for both iOS and Android and a desktop app that lets you access your business VoIP system from any device and access all the features you need in one single app.

1) Voicemail to email transcription

Another incredibly useful feature of VoIP services is voicemail to email transcription. That means if you miss a call, rather than listening to voicemails you can get a transcript of the call sent directly to your inbox.

Voicemail to email transcription is especially useful for busy team leaders or on-the-move mobile workers who can’t always get to their phones.

2) Online faxing

Faxing usually requires hardware like a wired fax machine but with the right VoIP provider, you can even send online faxes as easily as you would an email. With 8x8’s Virtual Office Pro add-on, you can send and receive unlimited internet faxes 24/7.

3) Video meetings

Video conferencing is an everyday part of business and we should expect to see more and more meetings taking place via video call rather than in person or over the phone. With that in mind, finding a VoIP service provider like 8x8 that also provides video calling functionalities could save you money and help you unify your business communications systems into one app.

When looking for video calling technology, make sure it has all the functionalities you’ll need for effective business meetings, including HD voice and video, screen sharing, messaging, cloud recordings, and mobile app and browser compatibility.

4) SMS messaging

Many businesses aren’t solely running sales and marketing over the phone. With many customers using their cell phones to get in touch with businesses, text messaging is another channel to assess when choosing a VoIP provider.

With SMS messaging VoIP functionality, your team can send and receive text messages using an SMS application program interface (API). This means team members can send and receive text messages using a professional company phone number from a desktop or directly from their mobile.

5) CRM integrations

Customer relationship management (CRM) software is regularly used by businesses in contact centers to manage and assess customer data. If you’re in need of a new VoIP provider, make sure you find one that can support the CRM integrations you need.

Effective use of CRM integrations can ensure customer interactions run smoothly and seamlessly. For example, when a customer calls your contact center, the agent will be able to automatically pull up that customer’s information, purchase history, and any other relevant data rather than having to spend time searching for the information while the customer waits on hold.

6) Team app integrations

In addition to CRM applications, your business may already have collaboration and management tools such as team messaging or time management apps, that need to be integrated with your communication channels.

VoIP phone system providers like 8x8 have a range of integrations and APIs that allow business owners to continue using their current tools, in order to avoid workflow disruptions.

When it comes to choosing the right VoIP system for your business, there are a few factors you should bear in mind. If you’re making the switch from legacy landline business phones using a PBX phone system, remember these points when choosing a VoIP provider:

Pricing

Pricing is often the first thing that business owners consider when choosing a VoIP provider. When it comes to researching the different prices of VoIP service providers, you should consider the following:

• Price per call: Does the VoIP provider offer unlimited calling, a maximum number of minutes per month, or will you pay per minute?
• International rates: What are the international calling rates for the countries your business works in? Can you set up a localized business phone number for cheaper rates?
• Monthly or yearly plan: How much is the monthly or annual payment plan for your chosen VoIP provider? Is the plan per month per user? Do you only need a basic plan or do you need to upgrade to a higher package for more features?
• Cancellation and contract length: How long is your contract with your potential VoIP provider and how easy and costly is it to cancel? This is something to bear in mind if you’re unsure of your future communication needs.

Unified communications as a software (UCaaS)

Another factor to consider is whether you need a VoIP provider or if you’re looking for a UCaaS provider who can also offer video call and messaging features for your team. Many UCaaS providers can offer either VoIP on its own or a larger package with more communication channels.

Figure out how much your current telecommunication channels are costing you and assess if choosing one provider for all of your communications is cheaper. If it’s not more cost-effective, you should also consider the time that could be saved by unifying your communications rather than asking your staff to switch between different apps.

Integrations and apps

If you already have workflow stacks or apps in place that work well for your business, investigate whether or not your chosen VoIP provider is compatible with your current systems. For example, if you’re already using a Salesforce CRM system or Microsoft Office 365, check if your VoIP system can be integrated seamlessly into your work environment.

Likewise, you should also find out what mobile and desktop apps are offered by your VoIP provider. Ideally, you want a business VoIP system that has a mobile app and desktop app that will work on your employees’ mobile devices and desktops.

Customer support

A huge benefit of VoIP telephone solutions is they often remove the need to have on-premises tech support for your internet business phone system.

To take advantage of this, you want 24/7, free after-sales service from your VoIP provider. That way, if you’re struggling with setting up the software or encounter any issues, you can reach out to your provider via phone, message, live chat, or email.

Security

Security is just as important to execs as it is to customers. Many companies handle and store sensitive customer, employee, and business data, which is why choosing a VoIP provider with top-level security is essential.

Make sure your potential provider has security certifications like PCI, FISMA, HIPAA, and GDPR. You should also always look for a VoIP provider that offers end-to-end call encryption so that your call data is always protected.

Do VoIP phones work without internet?

No - VoIP requires internet connectivity to work. If your broadband connection goes down, your VoIP phone system will not work. This is why some businesses have a hybrid VoIP system that combines VoIP with a backup landline in case of internet problems.

If employees are using a cell phone to make business phone calls, they’ll still be able to use their VoIP apps using cellular data if their internet signal is lost.

How do I convert my landline phone to VoIP?

If you already have landline phones in your business office or call center, you can still connect them to VoIP by using VoIP analog telephone adapters (ATAs). This allows you to connect an analog phone or fax machine to the VoIP network.

ATAs typically have an ethernet port and one or more foreign exchange station (FXS) ports for plugging the analog phone into. If you want to have POTN access in case your internet fails, you should look for an ATA that has a foreign exchange office (FXO) port as this will keep landline phones connected to the landline service.

Can I keep my number if I switch to VoIP?

Yes. Most providers allow you to keep your number by offering number porting. This is when you transfer an existing phone number from one service provider to another and is great for businesses that already have an established phone number.

VoIP phone solutions have many benefits, from lower costs and easy scalability to the potential to unify your communications into a single app. All of this is possible with 8x8.

With an 8x8 business VoIP phone system, you can upgrade your communications, save money, and provide a seamless communications experience for your staff and customers. Get in touch today to speak to a tech expert and book a live demo.